Canadian Oil Stocks

When people think of oil stocks, they are mostly thinking of Exxon or Royal Dutch Shell. Others will think of investing in Middle East oil companies. However, you should look at the country that the United States gets most of it s oil from. That would be Canada and you should look into investing in Canadian Oil Stocks.

Believe it or not, we do import most of our oil from our neighbors up north. Canada supplies us with about 2 million barrels a day of oil. What about Saudi Arabia? They are number 4 on our list of imported oil at less than 900, 000 barrels a day.

This presents many opportunities to invest in Canadian oil stocks. First Canada is a very safe country to invest in. This is important to any investor, stability. You don’t have to worry about a war suddenly breaking out in Canada, as you would if you invested in a mid-east country. Canada also respects international law. What that’s means is you won’t see Canada suddenly nationalizing and taking over the oil industry like you have seen in other countries these last few years. Once again safety is key to any investment.

How do you go about trading Canadian oil stocks? Some will trade on United States exchanges, but most of them are traded on the Toronto Stock Exchange. The Toronto Stock Exchange (also known as TSX) is the equivalent of the New York Stock Exchange.

Most stock brokerage firms are set up to allow someone in the United States trade the TSX.

Suncor Energy trades on the TSX and NYSE. Its ticker symbol on the NYSE is SU. This is one of the largest Canadian oil companies around. It operates as an integrated energy company. It is also a big player in the Canadian oil sands. Suncor is also involved in natural gas operations that acquires, explores and develops natural gas and gas by products.

EnCana is another large oil player that trades on the New York Stock Exchange. Its ticker symbol is ECA. Its oil and gas fields are in the United States and Canada. EnCana is involved in the exploration, development production and sale of crude oil and natural gas.

Another way to get involved in Canadian oil and gas stocks is to invest in their income trusts. Many of these trust pay very high h dividends. You can find dividend yields from 3% to over 12%. But remember, just because it has a high yield doesn’t necessarily make it a good investment. You could also simply invest in the iShares CDN Income Trust Sector ETF. This is an ETF that seeks to provide long –term capital growth by replicating the S&P/TSX Income trust Index. In this ETF you will find many of the income trust we spoke about earlier.

As you can see there are many ways you can invest in Canadian oil sands stocks. Start doing your research before investing and look into Canadian oil stocks for potential stock price appreciation and dividends.